March 29, 2022 Comments (0) Blog, Current Investigations

FS Energy and Power Fund Shareholders may have Recovery Options

FS Energy and Power Fund

FS Energy and Power Fund – Recovery of Investment Losses 

The White Law Group continues to investigate FS Energy and Power Fund. If you have suffered losses investing in FS Energy and Power, the attorneys at The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment. 

FS Energy and Power Fund (FSEP) is a non-traded business development company (BDC) that invests in the “debt and income-oriented securities of private U.S. energy and power companies,” according to its website. 

FS Energy and Power Fund (FSEP) is sponsored by FS Investments (formerly known as Franklin Square Capital Partners). As a non-traded BDC, the FS Energy and Power Fund limits how much stock “exiting” investors can sell. Unfortunately, investors may want to exit since performance has been sub-par due to the ups and downs of oil prices over the past few years.  

According to Central Trade and Transfer, a secondary market for alternative investments, shares of FSEP were recently sold for just $2.00 per share, which may indicate significant losses for investors. 

Further, FSEP’s NAV per share is currently $3.59 per share as of December 31, 2021. Shares were originally offered for $10.00 per share. According to the company, the purpose of these decreases is to ensure that the Company does not issue shares under the DRP at a price per share that was more than 2.5% greater than the NAV Per Share.  

The Trouble with Alternative Investments 

The trouble with alternative investment products, like FS Energy & Power Fund and other similar BDCs, is that they involve a high degree of risk and are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds. 

The White Law Group is investigating the liability that brokerage firms may have for improperly selling BDCs like FS Energy & Power Fund. 

Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations to ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience. 

Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes and if a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment, they may be found liable for investment losses in a FINRA arbitration claim. 

Potential Lawsuits to Recover Financial Losses

To determine whether you may be able to recover investment losses incurred as a result of your purchase of FS Energy & Power Fund or another Franklin Square investment, please contact The White Law Group at 1-888-637-5510 for a free consultation. 

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. The firm represents investors throughout the country in claims against their brokerage firm. 

For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com. 

  

 

Comments are closed.